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What Is “Furusato Nozei” — How I basically got FREE stuff from Japanese government

October 17, 2025
Relocation

If you live in Japan, you might have heard of ふるさと納税 (Furusato Nozei), but many people still don’t realize how powerful (and generous!) this system really is. It’s one of the most unique ways the Japanese government supports local towns, and the best part? You can get premium gifts like wagyu beef, fresh fruits, rice, seafood, and even desserts in return. 

Originally created to help smaller towns and rural areas gain more financial support. Now, it’s also super popular because of the 返礼品 (henreihin) the “thank-you gifts”.

So whether you’re after delicious local produce, looking to save on taxes, or simply want to give back to Japan’s beautiful countryside — Furusato Nozei might just be the sweetest (and tastiest) deal you’ll ever make. Keep reading to find out how it works, how to apply, and why it’s totally worth it!

What Exactly Is Furusato Nozei?

Furusato Nozei, or Japan’s Hometown Tax Donation Program, is a unique system that allows taxpayers to “donate” to any municipality in Japan, not just where they live but anywhere they prefer. In return, they receive two main benefits: a tax deduction and a thank-you gift from the region, such as premium wagyu beef, Hokkaido seafood, fruits, rice, or sake. It’s a win-win system that lets you support local communities while enjoying regional specialties that would normally be quite expensive to buy.

You don’t have to live in the town you donate to. Can pick anywhere in Japan that you prefer!

Does It Cost Me?

The key benefit is that almost the entire donation amount is refunded later through income tax and residence tax deductions, except for a small fixed amount of ¥2,000.

This ¥2,000 is considered your personal contribution, or the minimum cost to participate in the program. Everything you donate beyond that amount (up to your personal deduction limit, which depends on your annual income and household situation) will effectively come back to you as a tax reduction.

So, for example: If you donate ¥30,000 in total through Furusato Nozei, you’ll get ¥28,000 back in tax deductions, and you’ll also receive thank-you gifts from the municipalities you supported — all for an out-of-pocket cost of just ¥2,000.

How to Estimate Your Deduction Limit?

You can roughly calculate your maximum donation amount using Furusato Nozei simulators on:
• Rakuten
• Satofuru 
• Furusato Choice
(Just key in your annual income, dependents, and tax status.)

What Kind of Gifts Can You Get?

Almost anything! Some popular options include: 
• Japanese wagyu beef (from places like Miyazaki, Kagoshima, or Hokkaido) 
• Premium rice such as Koshihikari or Hitomebore 
• Seasonal fruits like strawberries, peaches, and melons 
• Seafood sets (crab, scallops, salmon, etc.) 
• Local sweets and desserts 
• Sake and local drinks You can even get daily necessities like tissues, cooking oil, or detergents, perfect for saving on household costs. 
• Local crafts or experiences

Who Can Apply?​

Furusato Nozei is available to anyone who pays taxes in Japan, including both Japanese citizens and foreign residents with taxable income. It’s especially popular among full-time employees, self-employed individuals, and long-term residents who want to enjoy tax deductions while supporting local communities.

If you don’t pay income or residence tax in Japan — for example, students, dependents, or short-term residents, you unfortunately can’t benefit from the deductions.

And make sure to check your donation limit based on your income before you apply!

How To Apply?

1. Choose a platform

These are the more popular ones: 
• ふるさとチョイス (Furusato Choice)
• さとふる (Satofuru)
• 楽天ふるさと納税 (Rakuten Furusato Nozei) 
• ANAのふるさと納税 (ANA) 

2. Pick your town & gift

Pick the town or municipality you’d like to support and browse through the available thank-you gifts, such as wagyu beef, premium rice, seafood, fruits, or even travel experiences. You can search by region or by product category to find something that interests you.

3. Donate online

Once you’ve decided, make your donation online using your preferred payment method, most platforms accept credit cards, convenience store payments, or bank transfers.

4. Get your gifts!

After your donation, your selected gifts will be delivered directly to your home, usually within one to three months, depending on the municipality and product availability.

5. Get your tax deduction

Finally, use the donation receipt (寄附金受領証明書) you receive to claim your tax deduction, either through the One-Stop Exception or by including it in your annual tax return.

How to Claim the Deduction?

1. One-Stop Exception (ワンストップ特例制度)

• For salary earners (no tax filing needed)
• Check “one-stop” when donating & send form + My Number copy by Jan 10 (next year)
• Max 5 municipalities/year

2. Tax Return (確定申告)

• For self-employed / 6+ donations
• Just attach receipts when filing taxes
• Deduction shown in income tax (this year) & residence tax (next year)

When Do You Need To Do It?

The deadline is December 31 every year. To count for this year’s tax deduction, you must complete your donation before the end of December. That’s why people start rushing to finish their Furusato Nozei in November–December, it’s like Japan’s version of a “tax season shopping spree.”

An amazing Japan journey is waiting for you.

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